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1. ABC Corporation pays dividends of P10 per share every year. If the growth rate of the equity is expected to be zero, then?
a. Dividends would continue to stay at P10 per share.
b.The value of equity would remain the same every year.
c. All earnings are paid out.
d. All of the above
2. Which lists the financing options from less to more risky?
a.Ordinary shares, Bonds
B.
C. Externally financed equity, Internally financed equity
D. Equity, Debt
3. If the lease agreement involves a seller-lessee and a buyer-lessor, the lease agreement is called
a. a sales and leaseback agreement
b. a leverage lease
c. tripartite lease agreement
d. finance lease
4. ABC has profits of P100,000, P200,000, P250,000 and P200,000 during the last four quarters. It paid dividends of P0.30, P0.60, P0.75 and P2.20. Their dividend policy would most likely be
a. Constant dividend per share plus extra
b. Constant percentage of net earnings
c. Constant percentage of net earnings plus extra
d. Constant dividend per share
5. ABC would like to repurchase 50,000 of its ordinary shares. Investor X offered to sell his 20,000 shares at P20 per share. Investor Y offered to sell his 30,000 shares at P21 per share. Lastly, Investor Z offered to sell his 50,000 shares at P22 per share. ABC eventually paid Investors X and Y P21 per share to complete the repurchase. This is a/an
a. Selective buy-back
b. Dutch auction self-tender repurchase
c. Open market operation
d. Fixed price tender offer
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